Texas Administrative Code

Texas Administrative Code

TITLE 28	INSURANCE
PART 1	TEXAS DEPARTMENT OF INSURANCE
CHAPTER 5	PROPERTY AND CASUALTY INSURANCE
SUBCHAPTER E	TEXAS WINDSTORM INSURANCE ASSOCIATION
DIVISION 3	LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES
RULE §5.4186	Remittance of Contingent Surcharges

(a) Except as provided in §5.4143 of this division (relating to Premium Surcharge Trust Funds), insurers must remit to the association the aggregate amount of contingent surcharges as provided by this section. An affiliated surplus lines insurer may allow a surplus lines agent to remit contingent surcharges to the association on its behalf in compliance with any procedures established by the association relating to contingent surcharge remissions from surplus lines agents.

(b) Insurers, or surplus lines agents allowed by affiliated surplus lines insurers to remit contingent surcharges under subsection (a) of this section, must remit all surcharges not later than the last day of the month following the month in which the corresponding written premium transaction was effective.

(c) Insurers and agents may not allow or require policyholders to make separate payments for the surcharge amounts that are payable to the association or the premium surcharge trust fund or funds.

(d) Subsection (b) of this section applies to all insurers regardless of whether the policyholder paid the contingent surcharge through an agent of the insurer or the policyholder paid the contingent surcharge directly to the insurer.

(e) An affiliated surplus lines insurer that allows an agent to remit contingent surcharges to the association under subsection (a) of this section may be held liable by the department for the failure of its agent to remit the contingent surcharges or timely remit the contingent surcharges, under subsection (b) of this section.

Source Note: The provisions of this §5.4186 adopted to be effective February 16, 2011, 36 TexReg 784; amended to be effective June 12, 2014, 39 TexReg 4463; amended to be effective March 9, 2016, 41 TexReg 1697